S.L. 373.1 Art. 8Verification of identification. 

(1) Subject persons shall verify the identity of the customer and, where applicable, the identity of the beneficial owner, before the establishment of a business relationship or the carrying out of an occasional transaction.

(2) Notwithstanding the provisions of sub-regulation (1), subject persons may complete the verification after the establishment of a business relationship where this is necessary so as not to interrupt the normal conduct of business provided that the risk of money laundering or the funding of terrorism is low and, provided further, that the verification procedures be completed as soon as is reasonably practicable after the establishment of the business relationship.

(3) Notwithstanding the provisions of sub-regulations (1) and (2), subject persons carrying out relevant financial business may open an account, including accounts that permit transactions in transferable securities, as may be required by the customer provided that adequate safeguards are put in place to ensure that no transactions are carried out through the account until the verification procedures in accordance with sub-regulation (1) have been satisfactorily completed.

(4) Where the beneficiaries of a trust, legal entity or arrangement are designated by particular characteristics or class, the subject person shall identify and verify the identity of the beneficiaries at the time of payout or at the time the beneficiaries exercise their vested rights:

Provided that, before the establishment of a business relationship or the carrying out of an occasional transaction, the subject person shall obtain sufficient information concerning the beneficiaries to be able to identify and verify their identity at the time of payout or at the time the beneficiaries seek to exercise their vested rights.

(5) Where a subject person is unable to comply with regulation 7(1)(a), (b) and (c), the customer due diligence procedures shall require that subject person not to carry out any transaction through the account, not to establish the business relationship nor carry out any occasional transaction, and to terminate any business relationship and to consider disclosing that information in accordance with regulation 15(3) to the Financial Intelligence Analysis Unit:

Provided that, where to refrain in such manner would likely tip-off the customer about the submission of a disclosure in terms of regulation 15(3) or a potential money laundering or funding of terrorism analysis or investigation, that business shall proceed on condition that a disclosure is immediately lodged with the Financial Intelligence Analysis Unit in accordance with regulation 15(3):

Provided further that subject persons carrying out a relevant activity under paragraph (a) or paragraph (c) of the definition ''relevant activity'' shall not be bound by the provisions of this sub-regulation if those subject persons are acting in the course of ascertaining the legal position of their client or performing their responsibilities of defending or representing that client in, or concerning, judicial procedures, including providing advice on instituting or avoiding procedures.

(6) Without prejudice to sub-regulation (5), a subject person who is in possession of funds of a customer or a potential customer and who pursuant to sub-regulation (5) decides to terminate or not to establish a business relationship, or not to carry out an occasional AND FUNDING OF TERRORISM transaction and to return, release or transfer those funds, shall as far as reasonably possible return those funds to the same source from where they originated and through the same financial channels by which the subject person came into possession of the funds, unless an order has been made or a notice has been issued in terms of the Act or these regulations prohibiting the release of such funds.